1) Was it for PHPExe group?
2) Have you considered FSQL? I have developed a library where you can use
FSQL without changing your mysql calls, so basically you will have to
change one or two lines only in your code, where you connect to the
database.
http://groups.google.com/group/phpexe/browse_thread/thread/f8c5e7da5607a800/457230970ffba022
3) I think that including MySQL requires a license from them (I am not
100% sure). Please learn their license agreement, and their licensing
policy first. If you can include it, then you can combine them in the same
installer, created for example with InnoSetup.
Another and a better way is to embed MySQL into your project:
http://www.mysql.com/products/embedded/
Paul.